COLLECTED WISDOM™ on the DOL and SEC Fiduciary Rules

This archive contains not only the most current material on the topic, but also older items that are still relevant, provide background, perspective or are germane to the topic.

If you find a broken link or an items that you feel is outdate, irrelevant or no longer appropriate, please let us know.

Other topical areas you may find of interest include Fiduciary Responsibility and Liability Issues and Fiduciary Related News and Intelligence.

Industry Watchers Point to Fiduciary Rule, ESG, Markets After Trump Win

As of Wednesday morning, the U.S. financial services industry is bracing for potential changes under a Donald Trump-led Republican administration. This could impact various aspects of employer-sponsored retirement plans, particularly fiduciary standards and Department of Labor priorities. Matthew Eickman, chief legal officer for the Fiduciary Law Center, predicts that a Republican-controlled administration and Congress will likely reverse many of the Department of Labor's regulations established in the past four years, including the recent fiduciary rule abandoned during Trump's first term.

Source: Planadviser.com, November 2024

DOL Fiduciary Rule Update -- Where Are We Now and Best Practices for Retirement Investors: Podcast

This podcast features a "Lessons From The Front Lines" discussion focusing on the DOL Fiduciary Rule. The panel of experts, including Jason Berkowitz from the Insured Retirement Institute, David Kaleda from the Groom Law Group, and Jason Roberts from the Pension Resource Institute, will share insights on the current status of the rule, future developments, and best practices for firms regarding investment recommendations and services for retirement investors.

Source: Complianceincontextpodcast.com, November 2024

To Be a Fiduciary, or Not to Be a Fiduciary?

The fiduciary rule is gaining renewed attention following a survey indicating strong support for the DOL Retirement Security Rule among various types of financial advisors. The survey, which included over 230 advisors, revealed that there is a high consensus on the need for a fiduciary standard for insurance brokers providing retirement investment advice, with an average agreement score of eight. Fee-only advisors showed the strongest support, scoring 8.7, while hybrid RIAs and broker-dealer representatives rated their agreement at 6.8. David Lau, the survey's conductor, and CEO of DPL Financial Partners, noted a surprising finding: broker-dealers now advocate for a fiduciary standard, reflecting a significant shift in the industry's attitudes over the past 15 years, where commission-driven sales practices were more common.

Source: Investmentnews.com, October 2024

The New Fiduciary Rule: The Loper Bright Decision and What it Means for DOL Exemptions

In the context of the DOL's fiduciary regulation and its related exemptions, the Supreme Court's decision in Loper Bright Enterprises et al. v. Raimondo could have implications for ongoing litigation. While it may influence outcomes, it might do so in unexpected ways. The article explores this connection by examining the Department of Labor's Prohibited Transaction Exemptions 84-24 and 2020-02.

Source: Fredreish.com, October 2024

The New Fiduciary Rule: The Loper Bright Decision and What it Means for DOL Regulations

The Supreme Court's decision in Loper Bright Enterprises et al. v. Raimondo could potentially influence the litigation surrounding the validity of the DOL's fiduciary regulation and its related exemptions. While the impact is affirmative, it may not be as straightforward as expected. The article explores how the Loper Bright decision relates to the review of the DOL's fiduciary regulation.

Source: Fredreish.com, October 2024

The New Fiduciary Rule: What is a Best Interest Process?

The article outlines the expectations of different standard-setters regarding the development of best interest recommendations. Both the DOL and the SEC have consistent and rigorous requirements for creating these recommendations for ERISA-governed retirement plans, their participants, and IRA owners. In contrast, the National Association of Insurance Commissioners model rule is less demanding in this respect. The article elaborates on the essential requirements needed for a best-interest recommendation process.

Source: Fredreish.com, October 2024

Sen. Warren Issues Report to Boost Argument for Retirement Security Rule

Arguing that it provides evidence that supports the DOL's currently stayed Retirement Security Rule, Sen. Elizabeth Warren has released a report concerning industry activity she suggests the rule is intended to address. The report is based on an investigation that began in April 2024, shortly after the rule was issued. According to the report, the investigation found that conflicts are pervasive in the annuity industry, third parties often facilitate these conflicts, and insurers use complicated and opaque disclosures when discussing these conflicts.

Source: Asppa-net.org, October 2024

Senior DOL Official Defends Fiduciary Rule; Says Appeals Could Take Years

Ali Khawar, the Principal Deputy Assistant Secretary of Labor for EBSA, at the CFP Board's 2024 Connections Conference defended the Retirement Security Rule and noted that the Department of Labor will appeal the court decisions that have paused its implementation. Khawar explained that the Retirement Security Rule is an important priority for the DOL.

Source: Asppa-net.org, October 2024

The Retirement Security Rule Would Have Taken Effect This Week, Now What?

The Retirement Security Rule, currently stayed by two district courts in Texas, would have taken effect Sept. 23 for most of its provisions. Now what? Jason Roberts, CEO of the Pension Resource Institute, says that fiduciaries should follow the rules that are currently in effect while the Retirement Security Rule is in litigation, meaning the five-part test. In the event DOL is victorious in litigation, an outcome many consider unlikely, new compliance dates would be issued.

Source: Napa-net.org, September 2024

Texas Federal Court Judge Issues Preliminary Injunction Blocking DOL's New Fiduciary Rule

A Texas federal judge has issued a nationwide preliminary injunction blocking the DOL's new fiduciary rule, which classifies more retirement advisors as fiduciaries under ERISA. The DOL's rule was set to go into effect on September 23, 2024, until the Court issued its order in Federation of Americans for Consumer Choice, et al. v. Department of Labor, et al., which stayed the rule until further order of the Court.

Source: Hallbenefitslaw.com, September 2024

Last-Minute Appeal of Fiduciary Rule's Stay by the DOL

On September 20 -- three days before the rule's original effective date -- the DOL appealed to the Fifth Circuit for a reversal of the ruling by the U.S. District Court for Eastern Texas that temporarily suspended the implementation of the 2024 Retirement Security Rule, also known as the fiduciary rule.

Source: Asppa-net.org, September 2024

Regulatory Monitor: ERISA Update

In the article, Groom principal David Kaleda examines the DOL's 2024 fiduciary rule. He gives an overview of the rule and covers its potential impacts, examples of how the rule might apply, and when it is expected to go into effect.

Source: Groom.com, September 2024

DOL Seeks to Keep ERISA Investment Advice Regulations in Place

The DOL recently filed a reply brief in a lawsuit brought by insurance industry groups seeking to block new regulations that expand the definition of fiduciary under ERISA. In its brief, the DOL asked the Court to deny a motion for a preliminary injunction that would prevent the agency from implementing and enforcing the new regulations.

Source: Hallbenefitslaw.com, September 2024

The New Fiduciary Rule: Recommendations to Transfer IRAs (SEC)

Two Texas Federal District Courts have "stayed" the effective dates of the DOL's new fiduciary regulation and related exemptions. As a result, one-time recommendations to plans, participants, and IRAs will not be fiduciary advice for purposes of ERISA and the Internal Revenue Code. However, one-time recommendations are regulated by the SEC for broker-dealers and investment advisers and by state insurance departments for insurance producers. In this article, Fred Reish discusses SEC and SEC staff guidance on recommendations to transfer IRAs.

Source: Fredreish.com, September 2024

Stop and Go? The Fiduciary Rule and Forfeiture Suits: Podcast

The so-called fiduciary rule has been stayed and legal challenges regarding forfeiture reallocation are picking up. Nevin Adams and Fred discuss what you should be doing now.

Source: Napa-net.org, September 2024

New DOL Fiduciary Rule Stayed: What Advisors and Insurance Agents Recommending Rollovers Should Do Now

The stay of the new DOL fiduciary rule will remain in effect until the lawsuits challenging the rule are decided and appeals are resolved. In the meantime, the fiduciary status of advisors and agents will be measured under the current regulation's five-part test. However, in some cases, the application of that test could result, as this article explains, in apparent one-time recommendations being deemed to satisfy the five-part test. As a result, advisors, agents, and their firms should carefully consider where fiduciary status for retirement accounts may apply and, in those cases, should consider complying with the conditions of an applicable prohibited transaction exemption.

Source: Faegredrinker.com, August 2024

DOL's Fiduciary Rule: The Latest Developments

A financial professional that is an ERISA fiduciary engages in a prohibited transaction if the financial professional uses its fiduciary authority to generate additional fees for itself or a person in whom the financial professional has an interest that may affect its best judgment as a fiduciary. To address this risk, many financial professionals rely on PTE 2020-02. The Fiduciary Rule would have amended the exemption's conditions. Because of two recent court orders, parties relying on PTE 2020-02 should continue to comply with the current (non-amended) version of PTE 2020-02.

Source: Klgates.com, August 2024

The New Fiduciary Rule: The Regulation and Exemptions are Stayed. What Remains?

In the past two weeks, two courts have agreed to stay the effective date of the DOL's new fiduciary rule, pending the resolution of the cases. The next step will be for those courts to determine if the regulation and exemptions are valid or should be vacated. However, there are still compliance issues.

Source: Fredreish.com, August 2024

ERISA Attorneys Outline Next Steps, Actions Item After DOL Fiduciary Rule Stays

Industry reaction is pouring in as the DOL faces a grave setback in implementing its Retirement Security Rule this fall. Two legal challenges filed in Texas have stalled the fiduciary rule from its September 23 effect, with the second stay having been issued late last Friday night. Despite initial shock from the industry, the challenges aren't unexpected, nor staggering for advisors already in compliance with the current fiduciary regulation, according to Bonnie Treichel, ERISA attorney and founder of Endeavor Retirement.

Source: 401kspecialistmag.com, August 2024

The New Fiduciary Rule: The Regulation and Exemptions are Stayed

Shortly after the DOL's new regulation defining fiduciary advice and Amended Prohibited Transaction Exemptions 2020-02 and 84-24 were finalized, two lawsuits were filed in Federal District Courts in Texas. The lawsuits sought to "vacate", or overturn, the regulation and exemptions as being beyond the authority of the DOL. In addition, the plaintiffs requested that the courts "stay" the effective dates of the regulation and exemptions pending the outcome of the lawsuits. In the past two weeks, both courts have agreed to stay the effective dates, pending resolution of the cases. This article discusses the consequences of the stays for broker-dealers, investment advisers, and insurance companies.

Source: Fredreish.com, August 2024

Two Texas District Courts Issue Orders Delaying the Effective Date of DOL Fiduciary Rule

Orders issued by the Eastern District of Texas on July 25th and the Northern District of Texas on July 26th indefinitely delayed the September 23, 2024, effective date of the DOL's revised regulation defining when a party becomes an "investment advice" fiduciary and amendments to seven related prohibited transaction exemptions.

Source: Beneficiallyyours.com, August 2024

The Never-Ending Fiduciary Rule Story Continues

Following the U.S. District Court for the Eastern District of Texas's stay of the Final Rules and related amendments to PTE 84-24, the next day the U.S. District Court for the Northern District of Texas issued a broader stay that applies to all of the prohibited transaction exemption amendments related to the Final Rules. The Court found that the plaintiff insurance agents, in this case, were "virtually certain" to succeed on the merits of their claims to vacate the Final Rules and the related exemption amendments.

Source: Erisapracticecenter.com, July 2024

Another Federal Court Slams Fiduciary Rule

A federal judge in a second suit challenging the DOL's fiduciary rule has put a hold on the rule, one more comprehensive than its predecessor. This second suit was also filed in a Texas federal court, but a different one, and by different plaintiffs, albeit arguing similar issues with the DOL's Retirement Security Rule, led by the American Council of Life Insurers.

Source: Asppa.org, July 2024

Federal Judge Slams Brakes on Fiduciary Rule

A federal judge put a hold on the effective date of the DOL's new fiduciary rule. In ordering the stay, United States District Judge Jeremy D. Kernodle explained that "the 2024 Fiduciary Rule suffers from many of the same problems" that were found in the version vacated by the Fifth Circuit back in 2018.

Source: Asppa.org, July 2024

Texas Judge Puts DOL Fiduciary Rule on Ice

U.S. District Judge Jeremy Kernodle, of the U.S. District Court for the Eastern District of Texas, issued a preliminary injunction to freeze the DOL's Retirement Security Rule. The preliminary injunction had been requested by the Federation of Americans for Consumer Choice, which brought the suit along with several independent insurance agents.

Source: 401kspecialistmag.com, July 2024

The New Fiduciary Rule: Rollovers and the Insurance License Issue

The definition of investment advice in the regulation includes recommendations about "securities or other investment property" which includes life insurance with an investment component and annuities. Under both PTE 84-24 and PTE 2020-02, a compliant rollover recommendation generally requires the consideration of the investments, services, and expenses in the retirement plan. As a result, the question has been raised about whether an insurance-licensed only insurance agent can legally "consider" a plan's investments, as is required by the PTEs.

Source: Fredreish.com, July 2024

The New Fiduciary Rule: Qualified Annuity Exchanges

A fiduciary recommendation to exchange "qualified annuities" is subject to the new fiduciary rules. In this article, Fred Reish discusses the requirements in NAIC Model Regulation #275 and the similarities and differences between the Model Rule and the PTE requirements.

Source: Fredreish.com, July 2024

Republican Congressmen Rail Against Biden Administration's Fiduciary Rule

Saying the Biden Administration's "overly restrictive" fiduciary rule put forth by the DOL "will only complicate financial planning with burdensome overregulation," authors of the Congressional Review Act Joint Resolution of Disapproval recently introduced in the House and Senate seeking overturn the rule, this week contributed an op-ed in the Washington Examiner explaining their rationale.

Source: 401kspecialistmag.com, July 2024

Insurers Respond to DOL to Forward Fiduciary Rule Lawsuit

A group of insurers seeking to halt the DOL's Retirement Security Rule from taking effect has responded to a counter-filing by the regulator alleging that "changes" the department made from a 2016 fiduciary proposal are not enough to make the 2024 proposal viable.

Source: Planadviser.com, July 2024

The New Fiduciary Rule: The Fiduciary Acknowledgment

The Impartial Conduct Standards and the Fiduciary Acknowledgment disclosure are effective September 23, 2024. The remaining conditions in the PTEs are effective on September 23, 2025. This article discusses the fiduciary acknowledgment.

Source: Fredreish.com, July 2024

Lawsuit vs. ESG Investing in 401k Plans Marks Courts' First Test After Chevron Ruling

A lawsuit challenging a Biden administration rule permitting socially conscious investing by employee retirement plans will test the courts' approach to federal regulations following a pivotal Supreme Court decision. The New Orleans-based 5th US Circuit Court of Appeals will hear arguments from 25 Republican-led states opposing the DOL's rule on Tuesday, reported Reuters.

Source: Investmentnews.com, July 2024

Fiduciary Rule Fate Clouds in Wake of SCOTUS Chevron Doctrine Ruling

The U.S. Supreme Court's 6-3 decision last week in Loper Bright Enterprises v. Raimondo to overturn the Chevron doctrine -- a central doctrine of administrative law that had stood since 1984 -- could very well derail the DOL's Retirement Security Rule. The Court held that Chevron, which grants significant deference to agency interpretations of federal statutes, conflicts with the Administrative Procedure Act's command that courts, not agencies, are to "decide all relevant questions of law" and "interpret statutory provisions."

Source: 401kspecialistmag.com, July 2024

House Committee Vote on "Stop Biden's Fiduciary Rule" Set

A resolution to disapprove the DOL's "Retirement Security Rule" could come up for a full floor vote of the House of Representatives before long if a House committee passes the resolution during a vote on Wednesday in Washington, D.C.

Source: 401kspecialistmag.com, July 2024

The Retirement Security Rule: Designed for Permanency?

This article outlines the DOL's objectives and enhancements to the definition of fiduciary investment advice in the final rule, and how it differs from the proposed rule and the vacated 2016 fiduciary rule. It also discusses the final rule's potential impact on investors and investment professionals who are currently subject to the existing regulatory landscape. The article also addresses related prohibited transaction exemptions that form the regulatory package, and how the package aims to level the playing field and provide clear and equal application of fiduciary protections in rendering investment advice.

Source: Truckerhuss.com, July 2024

The New Fiduciary Rule: Confusion About Incentive Compensation

The DOL's fiduciary regulation will be effective on September 23 of this year. While some of the requirements of PTEs 2020-02 and 84-24 also become effective on September 23, others will not be effective until a full year later on September 23, 2025. Both PTEs have provisions limiting incentive compensation and some have taken that to mean that incentive compensation is prohibited. That is not the case.

Source: Fredreish.com, July 2024

DOL ERISA Fiduciary Changes

The DOL's new fiduciary rule significantly expands the circumstances under which a person could be treated as providing investment advice that is subject to the ERISA fiduciary standards. Until we have a final decision on the rule, as plan sponsors, you should review your service agreements and reach out to your financial service providers to ensure that they are planning on complying with the new rules, including full disclosure of any potential conflicts of interest when this is settled.

Source: Consultrms.com, July 2024

Could SCOTUS Chevron Decision Undermine Fiduciary Rule?

With far-reaching implications -- likely including the DOL's fiduciary rule -- the nation's highest court has set aside a long-standing judicial deference to federal regulators in interpreting the law. While the full implications will take time to emerge, it's almost certainly going to produce more litigation, and in the process, less certainty for advisors, plan sponsors, and recordkeepers trying to operate within those boundaries.

Source: Asppa.org, July 2024

CFP Board Backs DOL Fiduciary Rule in Federal Court

Writing in an amicus, the CFP Board cautions that "If the Court accepts Plaintiffs’ arguments, then this will leave open significant regulatory gaps that allow advisors to recommend financial products, including insurance products, that are not in the best interests of retirement investors, in contravention of [ERISA's] mandate to provide a high level of protection for retirement assets."

Source: Napa-net.org, June 2024

What Plan Sponsors Should Know About DOL's Final Fiduciary Rule

While the direct effect of the DOL's final fiduciary rule on plan sponsors appears modest, plan vendors may decide to modify their service models -- including associated fees -- and sales practices. This is a comprehensive review of the rule including implications for plan sponsors.

Source: Mercer.com, June 2024

DOL Files Counter-Brief to Retirement Security Rule Challenge

The DOL answered one of two open lawsuits in the federal courts challenging the Retirement Security Rule on June 14. The regulator's first response in court argued that the new rule is compliant with existing case law and is substantially different from a 2016 regulation that was vacated by the U.S. 5th Circuit Court of Appeals.

Source: Planadviser.com, June 2024

First Lawsuit Filed Against DOL Over New ERISA Investment Advice Regulations

Texas-based insurance industry plaintiffs, including a nonprofit trade group, have filed the first lawsuit to challenge the DOL's recently issued final regulations that broaden the definition of fiduciary under ERISA. The plaintiffs allege that the regulations exceed DOL's authority under ERISA, the Internal Revenue Code, and the Administrative Procedure Act. They also claim that the rule and transaction amendments violate the APA because they are arbitrary, capricious, and incompatible with ERISA and the IRC.

Source: Hallbenefitslaw.com, June 2024

The New Fiduciary Rule: Confusion about Annual Retrospective Reviews

The DOL's new fiduciary regulation will be effective on September 23, 2024. Parts of the PTEs will be effective on that date also, but other parts will not be effective until a year later -- September 23, 2025. Unfortunately, this split of the effective dates has created a considerable amount of confusion about what needs to be done and when it needs to be done. This article discusses one of those issues, the annual retrospective review and report.

Source: Fredreish.com, June 2024

DOL Releases New ERISA Fiduciary Rule

The DOL on April 23, 2024, issued the Retirement Security Rule, which expands who qualifies as an investment advice fiduciary for purposes of ERISA. Under the ERISA fiduciary rules currently in effect, there is a plethora of investment professionals who are not subject to ERISA's fiduciary safeguards. The DOL indicated that the new rule and amended PTEs will close the loopholes that permitted certain investment professionals to avoid ERISA's fiduciary standards.

Source: Hklaw.com, June 2024

Are You a Fiduciary? The New Definition of an Investment Advice Fiduciary

This article addresses the definition of an "investment advice fiduciary" under ERISA, the DOL's official interpretation of the definition from 1975 through 2024, the policies underlying the DOL's transition to the new Retirement Security Rule, the requirements of the rule, and the impact thereof on businesses, investors, and plan sponsors. The article also examines the Retirement Security Rule's chance of survival in the face of current legal challenges.

Source: Bsk.com, June 2024

DOL Fiduciary Rule Challenge Gains More Support

The Hispanic Leadership Fund has filed an amicus brief in support of a suit brought by the Federation of Americans for Consumer Choice and others that "seeks to grant the motion to stay the Rule's effective date and to issue a preliminary injunction." It follows another amicus brief filed last week by the U.S. Chamber of Commerce in support of the legal challenge.

Source: Napa-net.org, June 2024

Jerry Schlichter Preps Advisors for Fiduciary Rule Changes: Podcast

Jerry Schlichter, founding and managing partner of Schlichter Bogard LLC and a well-known pioneer of retirement plan excessive fee litigation, visits the 401k Specialist Podcast to share some important insights on the upcoming changes, legal challenges and what advisors need to be doing to prepare for compliance.

Source: 401kspecialistmag.com, June 2024

TIAA Retirement Suit Foreshadows Future 401k Rule Litigation

A New York federal district court ruling tying TIAA to the alleged misconduct of its clients offers a rare glimpse at the upturned legal landscape awaiting pension servicers when a new 401k advice rule takes effect.

Source: Wagnerlawgroup.com, June 2024

Major Differences Between DOL's Proposed and Final ERISA Investment Advice Regulations

The DOL's final regulations broaden the definition of fiduciary under ERISA to include more investment advisors. However, the eight hundred pages of final regulations, which consist of a final rule and three sets of amendments to ERISA prohibited transaction exemptions, contain crucial differences from the proposed regulations. Therefore, despite the significant expansion contained in the rule, the DOL did retreat from some of its original proposals.

Source: Hallbenefitslaw.com, June 2024

The New Fiduciary Rule: The Education Exception

Not every communication with retirement investors is a recommendation. There are three notable exceptions in the new fiduciary rule, two of which are discussed in the preamble to the regulation: education and "hire me." This article by Fred Reish discusses the DOL's position on investment and retirement education.

Source: Fredreish.com, June 2024

Understanding the Department of Labor Final Fiduciary Rule

The final fiduciary rule expands the definition of who is an investment advice fiduciary to provide investment advice to a plan or an IRA under ERISA and the Internal Revenue Code. The DOL also made changes to several prohibited transaction exemptions available to investment advice fiduciaries, including the Prohibited Transaction Exemption 2020-02, which the DOL intends to be the primary source of relief for investment advice fiduciaries going forward.

Source: Fidelity.com, June 2024

The DOL Fiduciary Rule Is Here: Are You an Investment Advice Fiduciary?

Where for decades there was a five-part test that made a distinction between sales activity and ongoing, individualized investment advice that was relied upon by an investor as a primary basis for investment, the new definition now tries to cover all persons who interact with an investor and make a recommendation for an investment in a way that a reasonable investor might think they are acting as a fiduciary. The regulation now encompasses both individual retirement accounts and single rollover transactions.

Source: Carltonfields.com, June 2024

The New Fiduciary Rule and Amended PTE 2020-02: Effective Date Considerations

With the DOL's new fiduciary advice rule, many advisors will need the protection provided by Prohibited Transaction Exemption 2020-02 to receive the conflicted compensation resulting from the fiduciary advice. The DOL amended PTE 2020-02 at the same time as the new fiduciary rule; however, the effective date for some of the PTE's conditions is delayed. This article describes the effective dates that apply to PTE 2020-02.

Source: Brokerdealerlawblog.com, June 2024

DOL's Retirement Security Rule: Six Things Advisors Should Know

In April 2024, the DOL issued the final version of its Retirement Security Rule which imposes an ERISA fiduciary standard. Staying informed about and compliant with the new Rule is crucial for financial professionals to uphold ethical standards, maintain client trust, and operate successfully within the industry. Here are some questions and answers to help break down some of the key changes as well as a checklist to aid in complying with the new rule.

Source: Manning-Napier.com, June 2024

The New Fiduciary Rule: The "Hire Me" Exception

Not every conversation with retirement investors is a recommendation under the DOL's new fiduciary rule. There are three notable exceptions, two of which are discussed in the preamble to the regulation: education and "hire me." This article discusses the "hire me" exception.

Source: Fredreish.com, May 2024

The Fiduciary Rules and the Impact on Advisors and Insurance Agents

Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit podcast, Fred and Brad look at the new fiduciary rules and their impact on advisors and insurance agents.

Source: Spotlightonbenefits.com, May 2024

Nine Insurance Trade Groups File Suit Against DOL's New Fiduciary Proposal

The DOL went into the Memorial Day weekend with a fresh lawsuit seeking to undo its Retirement Security Rule filed by nine insurance trade associations. The associations filed the suit in the U.S. District Court for the Northern District of Texas, which is within the jurisdiction of the Fifth Circuit Court of Appeals. The associations cited the Fifth Circuit in the complaint because several years ago the court overturned a prior rule DOL intended to change the definition of what it means to give fiduciary advice for retirement investments.

Source: Planadviser.com, May 2024

DOL's Hauser "Comfortable" New Fiduciary Rule Addresses Prior 5th Circuit Rebuttal

The DOL's new Retirement Security Rule was designed with the U.S. 5th Circuit Court of Appeals rebuttal of a prior fiduciary proposal in mind, an official noted to the American Bar Association, a day after an insurance agent advocacy group filed a motion to pause the rule while litigation plays out.

Source: Planadviser.com, May 2024

FACC Files Second Lawsuit Against DOL Fiduciary Rule

The FACC, along with other independent insurance agents, filed the preliminary injunction in the U.S. District Court for the Eastern District of Texas. The suit argues that if applied, the new fiduciary rule would cause "dire consequences for tens of thousands of independent insurance agents and their clientele if not stopped." Therefore, its implementation should be delayed until the first lawsuit is settled, plaintiffs maintained.

Source: 401kspecialistmag.com, May 2024

The DOL's Final Fiduciary Rule: What Private Fund Managers Need to Know

The DOL's final fiduciary rule is considerably narrower in scope from the rule the DOL adopted in 2016 since it limits fiduciary status to recommendations made by persons who effectively hold themselves out as occupying a position of trust and confidence to a retirement investor. This should make the final rule less disruptive for managers of private funds such as private equity, credit, real estate, and hedge funds than the 2016 rule, but there are certain important points for managers to focus on. This article focuses on the practical impacts of the final rule on such private fund managers.

Source: Ropesgray.com, May 2024

Plaintiffs File Lawsuit Challenging DOL's Amendment of ERISA's Advice Fiduciary Rule

On May 2, 2024, a group of plaintiffs filed a complaint against the DOL challenging the validity of DOL's recently finalized amendment to the ERISA advice fiduciary regulation. This article highlights key claims plaintiffs are making in this case: that DOL's imposition of the general ERISA fiduciary obligations of prudence and loyalty on IRA advisers and its refusal to provide a carve-out for brokers as mere salespersons cannot be supported by the statute and that the 2024 amendment to the rule must be vacated.

Source: Octoberthree.com, May 2024

Challenges and Opportunities in the New Fiduciary Marketplace

A panel on day two of the Broadridge 360 Advisor Summit offered guidelines for new and experienced retirement plan advisors wanting to better understand the DOL's fiduciary rule. Here, Jason Roberts of the Pension Resource Institute discusses how the fiduciary rule will impact seasoned and emerging professionals.

Source: 401kspecialistmag.com, May 2024

New DOL Fiduciary Rule: Top Five Facts Advisers Should Know

The new fiduciary rule, or officially the Retirement Security Rule, is effective September 23, 2024, and casts a wide net that could cause one-time recommendations about a retirement account to be considered a fiduciary act. In this article, ERISA experts from Faegre Drinker Biddle & Reath provide five facts registered investment advisers need to know about the DOL's new Retirement Security Rule.

Source: Planadviser.com, May 2024

401k Rule Suit Echoes Past Legal Attack on Obama-Era Version

The DOL's newest fiduciary rule finalized in late April prompted a swift legal response from insurance industry stakeholders, who sued on May 2 in the US District Court for the Eastern District of Texas to block and vacate it and an accompanying amended prohibited transaction exemption. The plaintiffs are following a similar playbook to litigants who successfully convinced an appeals court to vacate a previous iteration of the standard six years ago.

Source: Wagnerlawgroup.com, May 2024

Bills to Nullify the Retirement Security Rule Proposed in Congress

Members of the House and Senate introduced companion bills under the Congressional Review Act that would nullify the Department of Labor's Retirement Security Rule. The rule was finalized in April and would subject one-time transactions such as annuity sales and rollovers to fiduciary obligations under ERISA.

Source: Plansponsor.com, May 2024

Unpacking the DOL's Final Retirement Security Rule: A Guide for Plan Sponsors

The DOL's recent final Retirement Security Rule has significant implications for plan sponsors and fiduciaries. At the heart of this rule is the amended Prohibited Transaction Exemption 2020-02, which provides relief from prohibited transaction treatment for conflicted fiduciary advice, subject to stringent conditions. As a plan sponsor, it's crucial to understand how this PTE impacts your fiduciary duties and responsibilities. This comprehensive analysis delves into the details of PTE 2020-02.

Source: Octoberthree.com, May 2024

A Long and Winding Road: DOL's Final Rule 4.0

On April 23, 2024, the DOL released its Final Rule 4.0 regarding ERISA fiduciary investment advice, including amended exemptions for conflicted investment advice. The effects of the Final Rule for plan sponsors will primarily be indirect, reflected in the availability and delivery of plan- and participant-level services from third-party financial services providers. In the near term, however, the initial effective date is September 23, 2024, and existing agreements were not grandfathered, which may lead to substantial renegotiation or replacement activity over the balance of the year.

Source: Eversheds-Sutherland.com, May 2024

The Newest and Final Fiduciary Rule

The release of the final rule, reviewed here, marks another step in a long-running saga. The DOL's proposal released last October received nearly 20,000 public comments and petitions. The new rule is expected to receive significant public commentary and potential legal challenges. Plan sponsors should seek to understand the scope of the current relationships that may fall under these requirements.

Source: Callan.com, May 2024

Fred Reish Unpacks the DOL's New Fiduciary Rule: Podcast

The DOL released its final Retirement Security Rule recently, which aims to raise the legal bar for financial advisors, brokers, insurance agents, and others who give retirement investment advice. Noted ERISA attorney Fred Reish shares his thoughts on some of the rule's key focuses and changes, along with implementation questions and potential hurdles to the rule becoming effective in September.

Source: 401kspecialistmag.com, May 2024

DOL's New Investment Advice Fiduciary Rule and Related Exemption Amendments

On April 25, 2024, the DOL's new fiduciary investment advice rule, restyled as the "Retirement Security Rule," was published in the Federal Register, amending a rule that has been unchanged since it was first published in 1975. Also on April 25th, DOL published a package of amended prohibited transaction class exemptions. Through this package, DOL seeks to modernize ERISA's rules to reflect the significant changes that have occurred in the retirement investor space in the almost 50 years since ERISA was passed in 1974.

Source: Wagnerlawgroup.com, May 2024

401k Advice Rule Puts New Fiduciaries in Litigation Crosshairs

A newly finalized rule from the DOL is poised to spur a new crop of suits under federal employee benefits law over alleged fiduciary breaches by defendants who previously weren't held to the strictest standard of care in handling retirement savers' funds. Lawsuits focusing on the extent to which an insurance agent, broker-dealer, or another party becomes a fiduciary by giving investment advice for a fee, a matter that hasn't been litigated frequently in federal courts, could emerge from the new fiduciary standard, according to benefits lawyers.

Source: Wagnerlawgroup.com, May 2024

401khelpcenter.com, LLC is not the author of the material referenced in this digest unless specifically noted. The material referenced was created, published, maintained, or otherwise posted by institutions or organizations independent of 401khelpcenter.com, LLC. 401khelpcenter.com, LLC does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.

About | Glossary | Privacy Policy | Terms of Use | Contact Us

This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.